SECTION A

1. Which of the following is the supreme law of the Federation of

Malaysia?
A The Parliament
B The Prime Minister
C The Federal Constitution (1
mark)

2 Which of the following parties has the burden of proving

negligence?
A The plaintiff
B The defendant
C The court (1 mark)

3 Which of the following is NOT a defence to the tort of negligence?

A Res ipsa loquitur
B Volenti non fit injuria
C Novus actus interveniens
D Inevitable accident (2
marks)

4 Which of the following refers to the law passed by Parliament?

A Act
B Enactment
C Statute (1 mark)

5 What is the effect of a contract made by a minor?

A It is void
B It is voidable
C It is unenforceable (1
mark)

6 Certain charges on the assets of a company to secure borrowings

by a company have to be registered with the Companies
Commission of Malaysia. Which of the following statements
describes the effect of non-registration of a registrable charge?
A It becomes voidable at the option of the creditor
B It is void against the company
C It is void against the liquidator and any creditor of the company
D It is illegal (2 marks)

7 Jeremy checked into a room in a hotel. He left his luggage in the

room and went shopping. Upon returning he found his luggage
missing. When he reported this loss to the hotel management to
make a claim, he was shown a notice on the wall of his room which
stated that patrons keep their belongings in the room at their own
risk and that the hotel is excluded from liability for any loss that
may occur to them. Which of the following statements accurately
reflects Jeremys legal position?
A He is not bound by the exclusion clause and may sue the hotel
management for his loss
B He is bound by the exclusion clause and cannot sue the hotel
management for his loss
C He is partly bound by the exclusion clause and may only sue to
recover part of his loss
D He is partly bound by the exclusion clause and may only sue the
cleaners and not the hotel management
(2 marks)

8 Which TWO of the following requirements are necessary for a valid

agreement to arise? (1) Proposal (2) Consensus ad idem (3)
Invitation to treat (4) Acceptance (5) Consideration
A 1 and 2
B 2 and 4
C 3 and 5
D 1 and 4 (2 marks)

9 One of the characteristics of persons who have the capacity to

enter into a contract is that they must be of sound mind when they
enter into the contract. Which of the following criteria must a person
of sound mind fulfil? (1) Not certified as mentally incapacitated by a
medical doctor (2) Capable of understanding the nature of the
contract (3) Capable of forming a rational judgment as to its effects
upon his interests (4) Capable of fulfilling his obligations under the
contract
A 1 and 2
B 2 and 3
C 3 and 4
D 1, 2, 3 and 4 (2
marks)

10 Ah Meng has been employed by ABC Sdn Bhd for the last six
years. What is the number of days of annual leave that he is entitled
to under the Employment Act 1955?
A 8 days
B 12 days
C 16 days (1
mark)

11 In Malaysia, the Special Court has jurisdiction over which of the

following selected people? (1) The Yang di Pertuan Agong (2) The
Sultans of the respective states (3) The Prime Minister (4) The
Cabinet Ministers
A 1 and 2 only
B 3 and 4 only
C 1 and 3 only
D 1, 2, 3 and 4 (2
marks)
12 Which of the following is a discharge of a contract by frustration?
A Ali contracted with Bakar to supply 1,000 cans of milk packed into
boxes of 10. However, the cans of milk were packed into boxes of 8.
This was due to the mistake made by Alis worker.
B Ali contracted with Bakar to supply 100 cans of milk packed into
boxes of 10. Alis factory caught fire and Ali could not fulfil his
contractual obligation.
C Ali contracted with Bakar to supply 100 cans of milk packed into
boxes of 10. However, due to an increase in prices of raw material,
Ali refused to deliver the goods unless Bakar pays another RM1,000
for the said goods.
D Ali contracted with Bakar to supply 100 cans of milk packed into
boxes of 10. Ali delivered the goods to Bakar 2 weeks later than the
agreed date. (2 marks)

13 One of the grounds for the winding up of a company by the court

is that the company is unable to pay its debts. Which of the
following statements with regard to when a company is deemed to
be unable to pay its debts is correct?
A When the creditor to whom a sum exceeding RM500 has served a
demand upon the company and the company has for three weeks
thereafter failed to pay
B When the creditor to whom a sum exceeding RM1,500 has served
a demand upon the company and the company has for three weeks
thereafter failed to pay
C When the creditor to whom a sum exceeding RM2,500 has served
a demand upon the company and the company has for three weeks
thereafter failed to pay
D When the creditor to whom a sum exceeding RM5,000 has served
a demand upon the company and the company has for three weeks
thereafter failed to pay
(2 marks)

14 Which of the following accurately defines a void agreement?

A One that can be enforced by all parties
B One that can be enforced at the option of the party who did not
breach the contract
C One that is not enforceable by law (1
mark)

15 In the context of corporate personality, which of the following

statements with respect to the debts of the company are correct?
(1) The liability of a member in a limited company is limited (2) The
liability of a limited company is limited (3) The liability of a member
of an unlimited company is not limited (4) The liability of an
unlimited company is not limited
A 1, 2, 3 and 4
B 1 and 3 only
C 2 and 4 only
D 1, 3 and 4 only (2
marks)

16 In the context of the law of contract, which of the following

statements is NOT correct?
A An offer may be made to a specific person or to the world at large
B An offer must be communicated to the offeree before the offeree
is eligible to accept the offer
C An offer must be express or implied D An offer must be in writing
(2 marks)

17 Which of the following is NOT an element of the tort of

negligence?
A The defendant owes a duty of care to the plaintiff
B The plaintiff has breached their duty of care to the defendant
C The plaintiff has suffered loss as a result of the defendants breach
of duty
D The defendant has breached their duty of care to the plaintiff (2
marks)

18 Which of the following is NOT a remedy for an employee for

unjustifiable dismissal?
A Reinstatement
B Specific performance
C Compensation in lieu of reinstatement (1
mark)

19 Amry agreed to sell his car to Bama for RM25,000. Amry agreed
to fit the car with new tyres before delivery to Bama. However,
when the car was delivered to Bama it was found that the car was
not fitted with new tyres as promised. Which type of contractual
term has been breached by Amry?
A Condition
B Warranty
C Intermediate term
D Non-significant term (2
marks)

20 Which of the following is NOT a duty of an agent to the principal?

A Duty to follow the instructions of the principal
B Duty to insure the property of the principal
C Duty to render true accounts (1
mark)

21 There are several rules which are applied in the interpretation of

statutes. One of the rules is that where a statute refers to a class of
items followed by a general term, the general term is interpreted to
refer to that class of items only. Which of the following rules of
interpretation reflects this situation?
A The ejusdem generis rule
B The golden rule
C The mischief rule
D The literal rule (2 marks)

22 What is the maximum number of partners for a professional

partnership?
A 20
B 50
C Unlimited (1 mark)

23 Irene offered to sell her car to Devi for RM50,000. Rani heard
about the offer and told Irene that she wanted to buy the car for
RM50,000. The next day, Devi told Irene that she was willing to buy
the car for RM50,000 as offered by Irene. To whom should Irene sell
the car?
A Rani
B Devi
C Up to Irene (1 mark)

24 Which of the following describes the classification of sources of

law?
A Written or unwritten
B Civil or criminal
C Common law or equity
D Substantive or procedural (2
marks)

25 Froddo wanted to make a false claim from his insurance

company. He gave his doctor an incentive of RM1,000 to obtain a
medical report to support his claim. He also offerred RM1,000 to his
insurance agent, Bala, as an incentive for Bala to convince the
insurance company that his claim was genuine. Bala accepted the
money and convinced the insurance company to pay Froddo. Which
of the following offences under the Malaysian Anti-Corruption
Commission Act 2009 apply to this situation?
A Offence of accepting gratification only
B Offence of giving or accepting gratification by agent only
C Offence of intending to deceive principal by agent only
D All of the above offences (2
marks)

26 In the context of the Malaysian legal system, which of the

following is the highest court in Malaysia?
A Supreme Court
B Federal Court
C Apex Court (1 mark)

27 Which of the following statements with regard to a company

secretary is NOT correct?
A They must have their principal or only place of residence in
Malaysia
B They must not be above 70 years of age in a public company
C They must not be convicted of offences under the Companies Act
1965 (1 mark)

28 What is the consequence of breaching a warranty?

A The innocent party may terminate the contract
B The innocent party may claim for damages
C The innocent party may delay in the performance of their
obligations (1 mark)

29 Which of the following requirements must be fulfilled in order for

a company to validly pass a special resolution? (1) At least 14 days
notice of the meeting must be given to the members (2) At least 21
days notice of the meeting must be given to the members (3) More
than 50% of the members actually voting must vote in favour of the
resolution (4) At least 75% of the members actually voting must
vote in favour of the resolution
A 1 and 3
B 1 and 4
C 2 and 3
D 2 and 4 (2 marks)

30 When is a winding up by the court deemed to have commenced?

A At the time the resolution for the winding up by the court was
passed by the members
B At the time the resolution for the winding up by the court was
passed by the creditors
C At the time the petition for the winding up of the company was
presented
D At the time the court made the order for the winding up of the
company (2 marks)

31 Who is the head of the Federal Court?

A The Chief Judge
B The Chief Justice
C The Lord President (1
mark)

32 In the context of employment law, which of the following

situations reflects constructive dismissal?
A After five years of being employed as a clerk Danny was re-
designated as an executive officer. He immediately resigns.
B Elaine was employed as an accountant based in the head office in
Kuala Lumpur. She has been directed to report for duty next week to
the companys factory in Sandakan, Sabah. She immediately
resigns.
C Fiona was accused by her manager of using the companys car for
personal purposes and following an inquiry she was dismissed.
D Gary discovered that his employer was obtaining valuable
contracts from a third party as a result of bribery and corruption. He
resigns. (2 marks)

33 In relation to corporate restructuring and a scheme of

arrangement under s.176 Companies Act 1965, which of the
following statements are NOT true? (1) It is only binding on
members who voted in favour of it (2) It may be effected even
where the company is hopelessly insolvent (3) In addition to it, a
reconstruction can also be carried out
A 1 only
B 1 and 2 only
C 2 and 3 only
D 1, 2 and 3 (2 marks)

34 Which of the following statements about contract formation is

NOT correct? A They must always be in writing
B They are agreements
C They can be enforced in a court of law (1
mark)

35 What is the length of notice required to be given by the

employee to the employer under the Employment Act 1955 on
termination, where the contract does not prescribe the length of
notice and the employee has been employed for a period of 10
years?
A Four weeks
B Six weeks
C Eight weeks (1
mark)

36 From which of the following sources may a company pay a cash

dividend to its members? (1) Profit (2) Share premium account (3)
Share capital
A 1 only
B 2 only
C 2 and 3
D 1 and 2 (2 marks)

37 Which of the following is the most important feature of a limited

liability partnership as compared with a conventional partnership?
A The limited liability partnership can have an unlimited number of
partners
B The limited liability partnership is a separate legal entity distinct
from the partners
C Partners in a limited liability partnership will never be liable for the
debts of the limited liability partnership
(1 mark)
38 Which of the following situations does NOT fall within the
meaning of money laundering under the Anti-Money Laundering and
Anti-Terrorism Financing Act 2001?
A Where a person engages in a transaction that involves the
proceeds of any unlawful activity
B Where a person acquires, receives, removes from or brings into
Malaysia, proceeds of any unlawful activity
C Where a person unlawfully acquires property belonging to another
and disposes of it to a third party for a monetary consideration
D Where a person impedes the establishment of the true origin of
proceeds of unlawful activity
(2 marks)

39 Which of the following persons may be appointed as a director of

a company only if such appointment has been approved by the
court?
A A bankrupt
B A person who was a director of a company which was wound up
due to insolvency
C A person who was once removed as a director of a company
(1 mark)

40 Which of the following describes a contract of service?

A A contract under which one party supplies services to another
B A contract under which one party is employed by the other to
work for the other in accordance with the terms of employment in
consideration of wages
C A contract under which one party is required to supply workers for
the other D A contract under which one party provides personal
services to the other for a fixed duration in return for a fee
(2 marks)

41 Which TWO of the following are tests used to determine whether

there is a contract of service or a contract for services? (1) The
control test (2) The true earnings test (3) The master-servant test
(4) The integration test
A 1 and 2
B 2 and 3
C 3 and 4
D 1 and 4 (2
marks)

42 Which of the following procedures must be used by a company to

alter its objects clause?
A The passing of the special resolution
B The approval from the court
C The lodgement of special resolution with the court (1
mark)
43 What is the period of maternity leave that female employees are
eligible for under the Employment Act 1955?
A 60 days
B 90 days
C 45 days (1
mark)

44 Which of the following does NOT terminate an agency?

A The death of the agent
B The death of the principal
C The third party giving notice of termination to either the principal
or the agent D The principal giving notice of termination to the
agent or vice versa (2 marks)

45 In relation to contract law, which of the following statements

about consideration is true?
A It must not be inadequate
B It must not be insufficient
C It must not be past
D It must not come from a third party to the contract (2 marks)

PLEASE ANSWER ALL QUESTIONS.

1. Describes the various sources of Malaysian law.

2. English Common Law and the rules of equity form part of the
law of Malaysia. Discuss the extent of the application of the
English common law as applied in Malaysia today.
3. Describe the constitutions, powers and jurisdiction of the High
Court in Malaysia.
4. Answer True or False in respect of each of the following :
I) The Supreme Court is presently the highest court in Malaysia.
II) The Session Court is a subordinate court
Iii) The Federal Court is the highest court in Malaysia and it hears
appeals from the Court of Appeal.
Iv) The privy Council is the highest court of appeal in Malaysia.
5. describe the hierarcy and functions of the Superior Courts in
Malaysia.

SECTION B

PLEASE ANSWER ONLY 2 QUESTION OUT OF 3 QUESTION BELOW.

 1. A) Describe the basic elements of a valid contract
B) Always Hot Smelters berhad has agreed to sell a melting
furnace to Inferno SDN.BHD and has given an undertaking that the
melting furnace would have a temperature of not lower than
1427. Always Hot Smelters berhad delivered the furnace but the
specification was not fulfilled, I.e the furnace could only reach a
temperature of 1000.
Advise Inferno Sdn. Bhd

2.

1 C 2 A 3 A 4 A 5 A 6 C 7 A 8 D 9 B 10 C 11 A 12 B 13 A 14 C 15 D 16
D 17 B 18 B 19 B 20 B 21 A 22 C 23 B 24 A 25 D 26 B 27 B 28 B 29 D 30
C 31 B 32 B 33 B 34 A 35 C 36 A 37 B 38 C 39 A 40 B 41 D 42 A 43 A 44
C 45 B